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2 Introduction to the European Investment Bank 16/02/20142 European Investment Bank

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3 Introduction to the European Investment Bank European Unions long-term lending bank set up in 1958 by the Treaty of Rome. Shareholders: 27 EU Member States Key lending figures: Total lending: EUR 79.1bn (09) Outside the EU: EUR 8.8bn (09) Balance Sheet: EUR 367bn (09) Largest supra-national lender in the world 16/02/20143 European Investment Bank

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1116/02/201411 European Investment Bank EIBs medium term activities 1.Continue to align the Bank corporate objectives, targets, principles and standards with the evolving EU and international climate policy: The Kyoto Protocol and the Copenhagen Joint Statement to the UNFCCC Parties (ADB, AfDB, EBRD, EIB, IMF, and WB/IFC) 2.Gradually mainstream climate change considerations into Bank operations, building staff awareness, capacity, and expertise 3.Align sector lending policies on reducing greenhouse gas emissions 4.Finance the development of cost-effective early-stage low-carbon technologies 5.Help sovereign and private clients deal with climate risks and market failures by developing a full array of new financing instruments to lever private, public and own resources.

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12 EIBs early results Climate change lending is a key EIB objective, focusing on Energy Efficiency, Renewable Energy and sustainable transport. EUR 16.9bn for climate change in 2009, 20% of total lending. EUR 4.7bn for RE, EUR 1.5bn for EE, EUR 4.7bn for CC-related R&D and EUR 5.5bn for sustainable transport. Climate Change a Key Performance Indicator in EIB, with annual volume targets: 20% of total lending in 2010 and 22% in subsequent years. 16/02/2014 European Investment Bank

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20 CCCFL 1 output indicators Up to 3.4m t/y CO2 eq. saved when all projects will be in full operation – equivalent to the entire EIB portfolio of projects in 2009 Around EUR 1.1bn of total investment Up to 6,500 jobs created for the operating the projects One project has already obtained its CDM registration, four others are in preparation. For forestry projects, FSC certification is being considered. 16/02/2014

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21 What are the main benefits of the CCCFL 1? Under the ESF the EIB offers: Direct or indirect loans at attractive interest rates (AAA terms, not-for-profit status) Fixed & floating rate loans in USD, EUR, JPY, GBP Long maturities up to 25 years Loans are project-linked, oriented to the financing of the fixed asset component of an investment. Benefits of EIB stamp of approval that the projects complies with best standards (BAT) Catalytic effect on other sources of financing 16/02/201421 European Investment Bank

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22 What are the main benefits of the CCCFL 1? Open access to tenders to EU businesses EIB Procurement Guidelines applied to all projects ICB procedure for bids over EUR 5m Publication on the OJEU No national preference clauses No tied financing EIB to review and approve all tender documents 16/02/201422 European Investment Bank

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23 General operational considerations Projects financed by the Bank must be: economically justified technically viable financially self-supporting and environmentally sound All projects financed by the Bank are appraised by a multi-disciplinary team; confidentiality is always respected 16/02/2014

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24 The way forward Continued support to Climate Change projects in China China Climate Change Framework Loan 2 EUR 500m Focused on RE, EE and ER Signed in December 2010 – Projects to be identified Forestation Framework Loan EUR 250m To be concluded in 2011 Smart Grid project To finance Ultra High Voltage lines connecting RE plants to the coast Green railways project To finance EE and mass transit investments in China 16/02/201424 European Investment Bank